In a remarkable new discovery, a small team of U.S. Pentagon officials and American geologists have found massive reserves of iron, copper, cobalt, gold and other essential metals like lithium in Afghanistan. All together, these mineral deposits could be worth nearly $1 trillion dollars, and could transform Afghanistan into a preeminent mining center, attracting investors from all over the world.

The iron and copper discoveries that have been made so far are substantial enough to turn Afghanistan into one of the world’s major producers of both valuable substances.

In addition, geologists believe dry salt lakes in western Afghanistan may contain lithium deposits large enough to rival those of Bolivia, which possesses the world’s largest known reserves.  An internal Pentagon memo says with these discoveries, Afghanistan could turn into the “Saudi Arabia of lithium.”  Lithium is an essential element used widely in high-tech production; a necessity for computer chips to batteries to wind turbine components.

Although he concedes that developing these reserves will take time and money, General David H. Petraeus, commander of the United States Central Command, says there is “stunning potential here” and that this discovery has the potential to transform the Afghan economy, which thus far has centered around opium production and the drug trade.

Read the full article here…

A recent well explosion in Pennsylvania which blew contaminated gas and water 75 ft in the air has renewed awareness, and in some cases anxiety, over the highly productive yet controversial natural gas drilling technique known as hydraulic fracturing, or “fracking.”

Conventional gas drilling processes use approximately 80,000 gallons of water per well.  However,  the new method of horizontal drilling combined with “fracking” uses millions of gallons of water that has been laced with a cocktail of sometimes toxic chemicals.  These new techniques have opened up gas resources in many previously inaccessible areas, and dramatically increased U.S. natural gas production.

However, environmental pollution concerns have steadily increased in New York, Pennsylvania, Ohio, and West Virginia, across which spans the giant Marcellus Shale formation.  New York has already limited drilling in certain areas because of fears of possible groundwater contamination in watershed regions.   It is likely that similar regulations will soon be put in place to ensure protection of the environment as fracking drilling expands.

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Norway and Indonesia have signed a $1 billion agreement designed to curb rapid deforestation in vulnerable forests and peatlands.  In return for Norway’s significant investment, Indonesia will impose a 2 year moratorium on all new concessions of peat and natural forest lands for clearing.

Part of Norway’s $1 billion investment will go towards creating and monitoring new projects under the U.N.-baked forest conservation scheme, called Reduced Emissions from Deforestation and Degradation (REDD).  The Indonesia-based Center for International Forestry Research said this new deal could be “a game-changer in the drive to make REDD a reality.”

Norway and Indonesia’s landmark deal was supported by another notable investor – billionaire George Soros.  In advance of the deal-signing, Soros said he would personally guarantee $50 million to help slow global deforestation, which he believes is of the utmost importance in the struggle to reduce emissions.  ”If you can stop the eradication of the forest before it happens, its much easier than to reclaim the degraded land.  That is why I think quick action is so important.”

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Deforestation is a worldwide problem which contributes mightily to global greenhouse emissions.  It is estimated that one-fifth of all carbon dioxide emissions result from chopping down forestland, especially in tropical zones.

Land preservationists and climate change advocates want to end this environmentally harmful practice, saying doing so will benefit not only the atmosphere, but the U.S. farming economy.

A recent study by the National Farmers Union and Avoided Deforestation Partners estimates if global deforestation were stopped, the U.S. agricultural sector could boost its revenues from $190 billion to $270 billion through 2030.

U.S. crops  have long been undercut by unfairly cheap commodities harvested on “slash-and-burn” cleared land.  Stemming this practice would slow the spread of these artificially cheap commodities into the global marketplace.  The report says U.S. timber, soybean, oilseed and beef industries stand to enjoy particular gains.

Read more here…

The United States Department of Energy (DOE) is instituting its first-ever strategic plan to deal with “Rare earth metals” – the special group of elements that are essential components of clean energy technologies like electric vehicle batteries, compact flourescent light bulbs and solar panels.

As nations around the world increase development and deployment of clean energy, there is a growing anxiety about China’s clear dominance of these essential supplies.  China currently supplies nearly 95% of global demand  for rare earth metals, and the government is attempting to control all processing of rare earth metals.  Over the past seven years,  China has reduced global exports by 40% and some estimates expect China will begin halting exports of these rare earths within the next two years.

“It goes without saying that diversified sources of supply are important for any strategic material,” said David Sandalow, Assistant Secretary of Energy for Policy & International Affairs.  ”So too are substitutes and strategies for re-use and recycling.  If rare earth metals are going to play an increasing role in our economy, we need to pursue those strategies.”  The DOE is soliciting information from industry, research labs and other related organizations to gain a more complete understanding of cost and supply issues regarding rare earth metals.

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A veritable environmental catastrophe is developing in the Gulf waters around the Louisiana coastline following a fatal explosion on an offshore BP oil rig.

Last week’s incident left eleven workers missing and presumed dead,  and broke open a deep-sea pipe, which is currently leaking an estimated 5,000 barrels a day into the ocean.  Coordinated efforts from the U.S. Coast Guard and BP – which as leaser of the rig is responsible for all clean-up costs – have not succeeded in containing the oil slick.  Today’s reports indicate that strong winds are pushing the oil towards the shoreline, which is home to a variety of sensitive ecosystems and species that would all be in danger if the oil were to reach land.

The consequences of this major spill could spell disaster for President Obama’s proposal to expand offshore drilling in the United States, which he was offering as a way to encourage bipartisan support for a more far-reaching climate bill.  The President has ceased issuing new offshore drilling leases until a deeper investigation into this explosion is conducted.

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What is the fastest and most immediate way to reduce the globe’s rapidly rising demand for energy?  According to a publication from leaders at the World Economic Forum, entitled Energy Vision Update 2010; Towards a More Energy Efficient World, energy efficiency is the answer.

By closing the “efficiency gap” between today’s wasteful production methods and other more streamlined options, we can reduce global resource strain, and potentially save billions of dollars.   For every dollar spent on efficiency methods, the report estimates savings of $2-$4 in what would have been wasted energy.

Important developments in this sector are occurring around the world, including massive smart grid investment in South Korea, construction of new high voltage transmission lines in China and development of smart grid software in high-tech hubs in the United States and India.

The following chart shows where we are now… and how far we still need to go.

To satisfy its booming energy and resources needs, India is stepping up investments in foreign oil and resources assets. The International Petroleum Company of India (ONGC) has already acquired offshore oil and natural gas resources in Myanmar, Russia, and Vietnam.  Just like fellow developing nation China, which has put billions of dollars into overseas resources, India is looking to acquire additional assets.

ONGC’s Chairman R.S. Sharma is reportedly petitioning the federal government to establish a sovereign wealth investment fund to continue making these investments, as India is heavily reliant on imported oil.  In fact, the relationship between India and Saudi Arabia has developed so much recently that the Saudis have committed to doubling crude oil shipments to India.

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In the latest example of its global hunt for natural resources, China recently signed a $60 billion, 20-year coal supply contract with Australian mining company Resourcehouse.   Under the terms of the deal, which Clive Palmer, Chairman of Resourcehouse says is “Australia’s biggest ever export contract,” Resourcehouse will supply 30 million tons of coal each year for the next two decades to a unit of China Power Investement Corp., one of China’s major power producers.

Although China is rich in domestic coal resources, the energy-hungry nation has been reaching beyond its borders to secure future supplies for its rapidly industrializing population.  In December 2009, total Chinese coal imports reached a record monthly high of 16.38 million tons, jumping up 29.5% from November 2009.  Analysts say these high import levels were the result of insufficient supply in the domestic market, and are likely to remain high until March of 2010.

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Global Fund Exchange founders, Lauralouise Duffy and Anric Blatt first met WBCSD President
Björn Stigson in Sharjah, UAE  at the Sharjah Chamber of Commerce in 2009 and have been keen supporters of his organization since. The World Council for Sustainable Development produces some excellent reports like the one below and we would like to encourage you to visit their website at http://www.wbcsd.org/

New downloadable report

Copenhagen, 9 December 2009 – The relationship between land use and climate change is highlighted in corporate case studies included in a new report, entitled Tackling climate change on the ground ( 4.3 MB), released by the World Business Council for Sustainable Development

Land-use activities are a major source and sink of global greenhouse gas (GHG) emissions. Curbing deforestation and applying sustainable land-use management practices can reduce GHG emissions, while planting trees and managing forests can help remove GHGs (mainly CO2) from the atmosphere by sequestering them in plants and vegetation.

Examples of cases in the report include: developing new crop varieties that have less environmental impacts and can adapt to climate change, or products that help reduce emissions; using techniques like direct seeding and drip irrigation to reduce water use in dry regions, or keeping soils healthy so they store more carbon; and developing models and tools to find practical ways to reduce impact and prepare for the future.

The various cases demonstrate that t here is no single, globally applicable sustainable management solution for land use. Business is only part of the solution and must work with governments, civil society and others to develop a range of land-use approaches that tackle climate change.

Download

• Tackling climate change on the ground – Corporate case studies on land use and climate change ( 4.3 MB)

New Delhi, 4 February 2010 – The World Business Council for Sustainable Development (WBCSD) today launched the Vision 2050 report ( 2.6 MB), a study that lays out a pathway leading to a global population of some 9 billion people living well, within the resource limits of the planet by 2050. The report, released at the World CEO Forum in New Delhi, India, was compiled by 29 leading global companies representing 14 industries.

This work results from an 18-month combined effort with CEOs and experts, and dialogues with over 200 companies and external stakeholders in some 20 countries.

The report presents new opportunities for business in a broad range of business segments with the foresight to lead their societies on a sustainable business development agenda. Entitled Vision 2050: The new agenda for business, the report “lays out the challenges, pathway and options that business can use to create an opportunity-rich strategy, both regionally and globally, that will lead to a sustainable world,” said Dr. Mohammad A. Zaidi, Executive Vice President and Chief Technology Officer of Alcoa, who led the project as one of four co-chairs.

“The world already has the knowledge, science, technologies, skills and financial resources needed to achieve Vision 2050. However, concerted global action in the next decade will be required to bring these capabilities and resources together, putting the world on the path to sustainability,” explained WBCSD President Bjorn Stigson.

The publication outlines a future in which 9 billion people live well, enjoying health, food, shelter, energy, mobility, education and other basics of life. Syngenta CEO, Michael Mack added that “humanity has largely had an exploitative relationship with our planet; we can, and should, aim to make this a symbiotic one.” In the Vision 2050scenario, global society attains this standard of living at a sustainable rate, without further harm to biodiversity, climate and ecosystem services.

The report states that the world already has the resources to achieve Vision 2050,but there is a catch: “The radical changes highlighted in Vision 2050 demand a different perspective from business leaders, requiring them to rethink how they operate to stay on-track for a sustainable future,” added Samuel A. DiPiazza Jr., former CEO and Chairman of PricewaterhouseCoopers. This includes a radical transformation of global markets, governance and infrastructure, and a re-thinking of our ideas of growth and progress.

Vision 2050 spells out the “must haves” – the things that must happen over the coming decade to make a sustainable planetary society possible. These include incorporating the costs of externalities, starting with carbon, ecosystem services and water, into the structure of the marketplace; doubling agricultural output without increasing the amount of land or water used; halting deforestation and increasing yields from planted forests: halving carbon emissions worldwide (based on 2005 levels) by 2050 through a shift to low-carbon energy systems and improved demand-side energy efficiency, and providing universal access to low-carbon mobility.

As part of this transformation, Vision 2050 calls for a new agenda for business: to work with government and society worldwide to transform markets and competition. “Sustainability will become a key driver for all our investment decisions,” added Idar Kreutzer, CEO of Storebrand and another project co-chair. New rules for markets will reframe environmental challenges as economic challenges, driving innovation and competition in the direction of sustainability and away from resource- and energy-intensive production. Rationalizing prices to include such externalities as climate and biodiversity impacts will make corporate environmental efficiency a true competitive advantage across all industries and regions.

Business will lead market change by doing what business does best: forming partnerships, creating efficiencies and competitive advantage, seizing opportunities and meeting customer needs. At the same time, a shift toward sustainability will trigger trillions of dollars in new investments in infrastructure, technology and human services, creating new opportunities for business to thrive and grow. A recent study commissioned for this project with PricewaterhouseCoopers and released today indicates that this investment could reach US$ 3-10 trillion per annum in 2050.

Vision 2050, with its best-case scenario for sustainability and pathways for reaching it, is a tool for thought leadership, a platform for beginning the dialogue that must take place to navigate the challenging years to come. “It is hoped that the Vision 2050 work will be used for many years to come. It is designed to be a platform for companies when deliberating strategies and for dialogue with governments and society about how to realize the sustainable future,” concluded Per Sandberg, Project Director for Vision 2050.

Download

• Vision 2050: The new agenda for business – full report ( 2.6 MB)
• Vision 2050: The new agenda for business – summary report ( 2.4 MB)

Partnering with Sovereign Wealth Funds to Increase Assets

Barclays Capital has invested $1 billion over the past four years into physical energy assets, such as mining companies and oil fields, and for the first time, its resources unit is being opened to outside investments.  Barclays is looking to build a multibillion dollar fund with assets in Africa, Asia and Latin America, hold them for three to five years, and then resell to other investors.  The Financial Times reports Barclays is in “advanced talks” with South Korea’s Natural Resources Fund over a possible investment of $400 million.  This news is the latest in a string of international resources transactions made this year, especially involving China.  Analysts say this latest move may imply natural resources assets are becoming more attractive to sovereign wealth funds who are wary of potential forthcoming CFTC regulations on energy futures trading.

China Continues Domination of “Rare Earth” Elements

China produces approximately 93% of “rare earth elements,” little-known yet important elements such as dysprosium and terbium which are used in a variety of cleantech applications and missile technologies.  For the past few years, China has limited the production and exportation of these rare earths, and rumors are flying that China’s Ministry of Industry and Information Technology is planning to further tighten these regulations.  These policy changes could result in global manufacturers in rare earth-dependent industries moving business operations to China in order to guarantee access to these items.  Demand for rare earths, which can fetch up to $150/lb, has spiked due to wind turbines and new hybrid vehicles.  The electric motor in a Prius, for example, requires 2-4 lbs of the rare earth neodymium.  “The people who are making these products outside China are at a huge disadvantage and that is why more and more manufacturing is moving to China,” said Dudley Kingsnorth, an industry consultant based in Perth, Australia.